PoolTogether: Making Saving Fun

PoolTogether

What if you could save money while standing a chance to win big? This is the idea behind PoolTogether, this week’s token highlight on Fluidkey. You can now head to the app to claim some POOL.

PoolTogether’s mechanics are very simple:

  • Users deposit funds into a prize vault
  • The funds in the vault generate yield
  • The yield is allocated to daily prize draws going to the depositors of the vaults
  • The initial deposit can be withdrawn at any time

The protocol is a great example of onchain composability: it is built on lending protocols like Morpho and Aave to generate yield while adding its own prize logic on top of these protocols.

Small prizes are drawn on a daily basis, while much larger prizes are available every 2 weeks and every 3 months. The image below shows current prize sizes on Base.

Base Prize Sizes

There are currently about $12m in TVL in PoolTogether vaults.

PoolTogether TVL

The protocol is an early onchain primitive, with its first version launched in 2019. More recently, other onchain lottery protocols like Megapot have emerged.

It is a prime example of an onchain protocol that helps users save while being fun to use. It is also a great starting point to build an intuition around DeFi and smart contracts for someone new to crypto.

Note that none of our highlights are financial advice. The value of any of the tokens highlighted may go to zero.

See you next week!